Required Information Problem 11-4A (Algo) Estimating warranty expense and liability LO P4 The following information applies to the questions displayed below) On October 29, Lobo Company began operations by purchasing razors for resale. The razors have a 90-day warranty When a razor is returned, the company discards it and mails a new one from Merchandise Inventory to the customer. The company's cost per new razor is $14 and its retail selling price is $90. The company expects Warranty costs to equal 7% of dollar sales. The following transactions occurred. November Sold 50 CARD kor $4,500 canh November 30 Recognized warranty expense related to November sales with an adjusting entry. December 9 Replaced 10 carors that were returned under the warranty December 16 Sold 150 razors for $13,500 cash December 29 Replaced 20 carors that were returned under the warranty. December 31 Recognized warranty expense related to December salon with an adjoating entry. January 5 Bold 100 ranore for $9.000 canh January 17 Replaced 25 Kauore that were returned under the warranty: January 31 Recognized warranty expense related to January sale with an adjusting entry Problem 11-4A (Algo) Part 5 5. What is the balance of the Estimated Warranty Liability account as of January 31? Estimated warranty liability balance